Myer's total sales dipped two per cent in the last quarter but the department store has reported a "steady improvement" in the retail environment.
Total sales for the quarter ending April 30, 2011 were $657 million, down two per cent on the prior year. The department store said the Queensland and Victorian floods and cyclone Yasi negatively impacted sales to the tune of approximately $6 million.
Myer CEO Bernie Brookes countered the news of the sales hit by emphasising the strong performance of the store's womenswear, menswear, cosmetic and youth categories.
“While the last three months continued to be characterised by a cautious consumer with an increased propensity to save, we have seen an improvement in the retail environment,” Brookes said.
“There was a moderate and steady improvement in sales as the third quarter progressed and we had a pleasing mid season sale, which was ahead of last year.”
Within the fashion category, Myer confirmed its recent signing of label Fleur Wood as part of an exclusive wholesale agreement. The brand will roll out in eight stores from July.
It also highlighted recent coups including its exclusive department store concession agreement with Metalicus and the official launch of Sass & Bide in Myer stores from August. In addition, international labels including Catherine Malandrino and The Row will be in Myer stores from June.
Elsewhere in the business, Myer revealed it had officially acquired over four million members in its customer loyalty program, Myer One, and refurbishments had commenced at its Eastland (VIC) and Liverpool (NSW) stores.
“During the next few months, we anticipate beginning refurbishments at Carindale (QLD) and Marion (SA). Our new store rollout program is on track with the next new store to open in October in Mackay (QLD),” Brookes said.
He reaffirmed the company's previously announced profit guidance for 2010/11.
“During the remainder of 2010/11, we anticipate trading conditions will remain challenging and we continue to expect net profit after tax (NPAT) for 2010/11 to be up to five per cent below last year's NPAT of $169 million.”